Overview of Grantor Retained Annuity Trusts
The purpose of prohibiting commutation is to prevent termination of a GRAT when the grantor’s life expectancy is short. If a grantor dies during the term of the GRAT, a portion of the GRAT will be included in the grantor’s estate under section 2036. This amount could be reduced if the trustee could terminate the GRAT before the grantor’s death by paying the grantor an amount equal to the ... ................
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